Business and Economic Commentary by Christopher Ram Part 19

December 15, 2024

The Natural Resource Fund Debate – That Demands Accountability and Civility

The public debate and exchanges surrounding the Natural Resource Fund (NRF) highlight concerns about governance and the need for principled public discourse, particularly on grave national importance. At the centre is Dr Terrence Campbell, the holder of a PhD in Business Administration and a successful entrepreneur. In a letter to the media in his capacity as a member of the Investment Committee of the Natural Resource Fund, Campbell raised issues about transparency and compliance with the NRF Act. That letter emphasised the requirements of Section 16(2), which mandates that all withdrawals must meet specific criteria: financing national development priorities and major natural disasters.


Instead of prompting constructive debate, Campbell was personally attacked by anonymous bloggers and partisans who offered little substance while serving as a prelude to Vice President Bharrat Jagdeo’s direct intervention.

Jagdeo’s Missteps

In an initial comment, Mr Jagdeo accused Campbell of racism and, more recently, dismissed Campbell’s concerns by invoking a contrast between their respective upbringings. Jagdeo portrayed himself as humbly rooted on the East Coast of Demerara, implying that Campbell was urban and privileged. Correcting the Vice President, Campbell noted that he came out of the distant community of Mahdia with all its attendant challenges.


Taken together, Jagdeo’s statements reveal a dangerously flawed interpretation of the NRF Act. He asserted that detailed expenditure tracking was only necessary for emergency withdrawals, ignoring Section 16(2)’s clear stipulation that all withdrawals must meet specified criteria and undergo oversight. Emergency spending, governed by supplementary appropriation bills, requires a separate process distinct from the scrutiny of annual budgetary allocations. Jagdeo’s conflation of national priorities with general budget items further undermined his position, raising questions about his familiarity and knowledge of the law.

Campbell’s Measured Response


Campbell’s reply demonstrated civility and focus. While acknowledging Jagdeo’s slight concession – from declaring tracking “difficult” to agreeing to track emergencies – Campbell questioned why the same standard could not extend to all NRF withdrawals. Campbell emphasised that the national budget, filled with discretionary items, is not synonymous with national development priorities. He reiterated the NRF Act’s requirement for specificity and accountability, challenging Jagdeo to provide a legal basis for his distinction.

The Governance Gap


This debate underscores a broader concern about the NRF’s governance. Campbell’s call for the NRF Board and the Public Accountability and Oversight Committee to discharge their statutory duties reflects a commitment to the rule of law. These entities must ensure that all withdrawals align with the criteria set out in Section 16(2). If the government wishes to bypass these requirements, it should approach Parliament to amend the law – not reinterpret it to suit its agenda.


Jagdeo’s familiarity with the NRF Act adds another layer to the critique. He has been successively junior Finance Minister, Finance Minister, President and Vice President since 1992. He also led the attack on the Coalition Government’s NRF. He was in the National Assembly when the Ali Administration passed its version of the NRF in a late-night session of the National Assembly. And, of course, he has access to the Hansard of that debate.

Therefore, he should fully understand the distinctions between national priorities, emergency measures, and their respective legislative processes. His current misrepresentation undermines the principles of accountability outlined in the Act and emphasised in the Explanatory Memorandum, which committed the NRF to international best practices, including transparency and public reporting.

A Lesson for Public Discourse


Campbell’s approach offers a valuable example of how national debates should be conducted. Despite personal attacks, he remained composed and focused on the law. His critics, including anonymous bloggers, should note that public discourse benefits from substance, not ad hominem attacks. Jagdeo and his defenders would also do well to emulate Campbell’s civility and clarity.

Fixing the problems


There is no question in my mind that the Vice President’s use of words like “balkanisation” and “difficulty” and his subsequent concession on national disasters makes his interpretation less flawed or less mistaken. The Ali Administration needs to step back from this grave error and restore confidence in the entire NRF framework and operation. It must ensure that all withdrawals comply with Section 16(2)’s criteria without artificial distinctions between spending categories, that the NRF Board and oversight committees be independent, and that detailed public reporting on all NRF expenditures – whether for national priorities or emergencies – must become standard.


Public discourse must also rise above personal attacks. By fostering a culture of constructive engagement, Guyana can ensure that the NRF fulfils its potential as a tool for sustainable development and intergenerational equity.

Conclusion


The NRF is a historically unique opportunity for Guyana to secure its future. Its governance must reflect the highest transparency, accountability, and legal compliance standards, consistent with the Santiago principles. Jagdeo’s flawed interpretation of the NRF Act and the uncritical defences from his supporters highlight the urgent need for a course correction.


As someone who has been engaging in public discourses for nearly forty years, I found Campbell’s intervention bringing a much-needed sense of lucidity, decency and renewal. We all need to follow his example and commit to principled debate, ensuring that the NRF serves the people – not the politics of one man.

Leave a Reply